Dogecoin Spikes as Elon Musk Launches America Party, Raising Hopes for Crypto in Politics

Dogecoin rallied over 5% in the past day, moving from roughly $0.163 to $0.171, driven by renewed optimism after Elon Musk announced the formation of the America Party. The development has fueled conversations about how cryptocurrencies might feature more prominently in U.S. political discourse.

DOGE’s trading volume surpassed $1.1 billion, helping cement a strong support level near $0.166. Larger holders—known as whales—have been accumulating during this price surge, even as smaller traders chose to cash out, signaling that institutional or big-money players may be growing more confident in Dogecoin’s future.

What’s Fueling the Rally?

• Elon Musk caught attention over the weekend with his announcement of the America Party, sparking discussions across both political circles and the crypto community.
• Musk’s new political platform is pro-Bitcoin and includes criticism of Donald Trump’s “anti-innovation” economic policies, raising speculation that Dogecoin might play a role in Musk’s broader vision, both culturally and financially.
• While Musk didn’t directly mention Dogecoin during his speech, his history of incorporating DOGE into products from Tesla and X (formerly Twitter) has led to growing anticipation that the meme coin could feature in his political plans.
• Musk’s news comes at a delicate time for financial markets, with traders wary of the July 9 tariff deadline set by President Trump, which could have broad economic impacts.
• Blockchain data from IntoTheBlock reveals significant buying activity by whale wallets holding between 1 million and 100 million DOGE, while retail investor participation has slowed slightly.

Technical Breakdown

• DOGE gained 5.01% from 6 July 03:00 to 7 July 02:00, rising from $0.163 to $0.171.
• The biggest surge happened between 12:00 and 13:00 on 6 July, when DOGE leapt from $0.166 to $0.173 on volume exceeding 1.14 billion DOGE.
• Strong support has formed at $0.166, with prices consolidating between $0.170 and $0.173 after reaching a high of $0.174.
• Sellers were active near resistance at $0.173, particularly between 21:00 and 23:00.
• In the final hour of trading, DOGE advanced another 0.85%, moving past $0.171, with notable trade spikes at 01:16 (12.8M DOGE) and 01:36 (8.0M DOGE).